To inform Cabinet of the outcome of the competitive procurement process carried out in accordance with the Cabinet report approved on 28 November 2024 and the updated Public Realm Services model as set out in Appendix 1; and seek Cabinet approval to award the contract for the provision of the Public Realm Services to the successful bidder.

The Cabinet report marks the conclusion of a process to find and appoint a new contractor for the council’s largest single contract. Council officers were thanked for managing the procurement process, which has been completed on time and under budget. Special acknowledgment is also given to a former councillor John Harrington who initiated the review of the previous contractor, Balfour Beatty, which set the direction for the current changes.

This decision seeks to avoid repeating past approaches, to providing Public Realm Services.  The has council explored five different contractual models and selected a hybrid option. This new model will transfer several key services—such as asset management, network management, locality stewards, highways inspections, design and project management, customer services, communications, fleet management, and health and safety directly into the council.

As a result, 60 roles will move in-house, giving the council greater control and the ability to align activities with its own priorities and strategies. This approach provides the best outcome for Herefordshire.   The successful bidder will be announced in the new year.

The Cabinet discussed questions about:

The environmental standards required of the new contractor.

·       It was explained that government-mandated standards apply to works contracts. The procurement process included specific environmental questions, such as whether the bidder holds a valid ISO 14001 certification (an internationally recognised standard for environmental management systems (EMS)), or an equivalent from a mutually recognised UK organisation. The Cabinet had also looked for additional requirements such as access to competent environmental advice, their legal obligations to report carbon emissions under the Streamlined Energy and Carbon Reporting regulations, and industry recognised sustainability standards.

·       Bidders were also required to submit a draft carbon reduction and management action plan, outlining how they would deliver carbon reduction initiatives by 2030, in line with the council’s commitments.

How the public will see a difference in the new arrangements

• Under the new public realm contract, locality stewards who previously worked for Balfour Beatty will now work directly for the council. Their role will be to inspect roads and identify necessary jobs for the new contractor.  Potholes remain a high priority for the council, as well as our communities, this arrangement means the council can ensure that work is completed within agreed timescales and in accordance with the council’s highways maintenance plan.   Identified works will be reviewed by council staff before being ordered, to make sure the right work is requested and to avoid inefficiencies, such as repeatedly chasing defects along the same road.
• The new contract introduces a clear specification for repairs, for example how pothole repairs should be carried out. Payment will be made on a ‘per-pothole’ basis to illuminate increased costs for the council. The final repair work will be inspected by council staff, specifically highways inspectors, to ensure quality.

What opportunities will there be for the apprenticeships for young people

The council has built a strong social value and skills commitment into the new public realm contract. Specifically, the contract requires:

·       Six contracts per year to be awarded to  ...  view the full minutes text for item 49